This is a follow up on yesterday's post outlining the key chart developments here. Well the shorts must be nervous going into the weekend as the Russell 2000 and S&P 500 broke out from minor resistance in the Daily timeframe and closed near top tick on the session. Volume was down from the previous day. A Monday bearish day and close back beneath these trendlines with increasing Volume might set up an opportunity for a near term reversal and an entry to go short with well defined risk above the swing. In the meantime the trend might be up near term so those sitting with a losing short from down below and praying is one really bad spot to be in as it usually leads to pain when holding onto the wrong side of a breakout.
(Click on charts to expand)
S&P 500 (ES) - Notice the Volume Moving Average which has been going south while the market goes parabolic here.
Russell 2000 (TF)
Use the "Follow by email" option on the upper right hand side of the
blog to get any postings here without having to check the site each